Value of Halifax building permits skyrockets

StatsCan: Numbers hit $115 million in October, up nearly 240 % over last year

Equipment is used to prepare the building site for the future Nova Centre in downtown Halifax. The value of building permits in Nova Scotia is on the rise this fall and has jumped dramatically over last year. (ADRIEN VECZAN / Staff)

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Halifax’s rental-apartment construction market is red hot as the number of multi-unit buildings shoot up across the city.

The value of building permits in Halifax hit $115 million in October, almost a whopping 240 per cent higher than the similar month last year, Statistics Canada said Thursday.

Compared with September of this year, the October increase was still significant. The value of building permits in October was nearly 50 per cent higher than the month before, said figures from the national statistics agency.

Matthew Gilmore, a market analyst with Canada Mortgage and Housing Corp., said measuring the value of building permits is a way to keep an eye on construction activity.

“We did have a very significant number of apartment buildings start construction in August, September and October,” Gilmore said in an interview.

“In those three months, we had 1,074 apartment units start construction, which is quite a significant number.”

Residential construction in Halifax is the highest it has been since the 1970s, he said.

Although several factors influence the construction market, Gilmore said demographics are likely playing a part.

“Baby boomers are now empty nesters, and many are retired.”

Developers have noticed an uptick in interest from baby boomers considering apartments, he said.

“There is no maintenance, they don’t have to shovel the driveway or mow the lawn, and if they want to pack their bags and travel for a few months they can.”

Pam MacFarlane, research director with the Halifax commercial real estate firm Colliers International, said several major construction projects are underway in Halifax.

MacFarlane pointed to W.M. Fares Group’s St. Lawrence Place development on Joseph Howe Drive and Dutch Village Road, as well as several developments along Larry Uteck Boulevard and in Dartmouth as examples of a strong construction market.

“There are certainly some high-dollar projects underway right now that would significantly increase the value of building permits in the city.”

But while Halifax’s construction market is booming, the rest of the province is more stable.

The value of building permits across Nova Scotia increased to nearly $160 million in October, a 101 per cent increase compared with the year before, Statistics Canada said.

However, much of this provincewide increase can be attributed to the astronomical Halifax growth.

The month-over-month increase in the value of building permits across the province from September to October was 10 per cent.

Statistics Canada’s building permits survey includes seasonally adjusted data on the total number of housing units and the aggregate value of building permits. The survey includes all Canadian municipalities that issue permits.